A Laundy-Tindall-Short partnership has furthered their NSW north coast footprint with acquisition of the re-stapled Illawong Hotel of Evans Head.
Nick Tindall and wife Justine (nee Laundy), daughter to the pub king, had been actively eyeing traditional pub offerings outside the wider Sydney area, underpinned by strong land holdings and key metrics.
The Art-Deco Illawong is the only pub in the burgeoning coastal town of Evans Head, set on a sizeable 2,200sqm block, offering a large public bar, gaming with 15 EGMs, eight in a smoking solution, 18 quality accommodation rooms upstairs, and an attached bottleshop.
The pub enjoys strong revenue, balanced across all departments, with the scale to welcome the influx of visitors when the population in the area more than doubles in peak periods.
In recent times the business has been in the hands of Daniel Simpson, tenant to the long-term private freehold owners. Despite having five years left on his term, Simpson recognised the opportunity in sale of the packaged freehold going concern.
“I’ve loved my time at the Illawong and have enjoyed overseeing the expansion of the business during my tenure,” he says.
“The town of Evans Head is booming, with residential and commercial developments set to boost population and activity. I wish the new owners all the best and look forward to seeing the next phase of the hotel’s evolution.”
Last month news broke of a partnership between the Laundys and Fraser Short to buy the Lennox Head Hotel, south of Byron. The $40 million paid took into account the potential to be had arising from plans by Short.
Evans Head is a coastal town of nearly 3,000 residents, around 70 kilometres south of Byron Bay or 50 from Lennox Head, and 700 north of Sydney. Ballina Airport is a 40-minute drive away.
Opposite the pub is one of two very large caravan parks in the town, enjoying year-round occupancy.
Tindall sees the area as “understated”, blessed with the seclusion of one road in and out, while only a short trip from Ballina or Byron Bay, and set to benefit from the increased attention in the area.
“I can’t help but think that’s going to push it forward, and Evans Head is one of those that will follow suit,” he suggests.
The Tindalls took their interest in Illawong to loyal patriarch Arthur Laundy, who swiftly agreed to be in on the deal.
Given its geography, Fraser Short was also considered as a partner, bringing further economies of scale to the growing Laundy and Short portfolios in the northern rivers region.
While the Illawong is trading well, the new owners see plenty of opportunity in the trend toward strong pub accommodation offerings outside the cities, some adjustment to the gaming, and potential in the food offering to thousands of locals and tourists.
Tindall says they will focus on tuning in to the new breed of caravan parkers, while ensuring the locals have a pub they’re proud to visit.
Tindall Hotels is excited to welcome another addition to its slice of the industry pie, in a deal sources close to the action say was approaching $15 million, with an extended settlement as the tenant bids farewell to the business.
“Justine and I both spent quite a bit of time kicking this over the line,” says the new owner. “We think this is just a sensational coastal hotel in a town that’s already on a great trajectory.
“While we see potential for growth by unleashing the efficiencies of our network, we’re not going to make any massive changes to the hotel or its operation. Fraser Short and the amazing team at Sydney Collective have a great eye for detail, so adding a little of that polish will be all that the locals will notice.”
The packaged deal was managed by Pub Brokers & Advisory’s Nick Butler and Steve Pursell, who are happy to be riding the wave of north coast assets and be part of a family legacy handover.
“Balancing the interests of a leaseholder and freehold owner was made far easier by their recognition that the whole was greater than the sum of the parts,” says Butler.
“It’s been an important factor for the owners, in making their decision to sell, that the hotel is transitioning to a family that appreciates how important the pub is to the town.”
